Question

Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:

                                           % complete      % complete
                                units         DM           conversion 
work in process, April 1        18,000        38%             71%
units started during April      80,000
work in process, April 30       44,000        82%             47%

The cost of beginning work in process and the costs added during April
were as follows:

                                 DM         Conversion       Total cost
work in process, April 1      $ 51,764       $152,477         $204,241
costs added during April       191,452        232,125          423,577
total costs                    243,216        384,602          627,818

Calculate the total cost of the handling department's work in process
inventory at April 30 using the weighted average process costing method.

Answer 1

 The total cost of the handling department's work in process
inventory at April 30 using the weighted average process costing method is calculated as follow

CALCULATION OF COST of ENDING WORK IN PROCESS
VALUATION OF CLOSING WIP of 44000	EQUIVALENT UNITS
MATERIAL	36080	$                    2.70	$                        97,416
LABOR	20680	$                    5.15	$                     106,502
TOTAL VALUE OF 44000 UNIITS WORK IN PROCESS			$                     203,918

ALL DETAILED CALCULATION FOR FINDING OUT VALUE OF CLOSING WIP IS DONE BELOW

Question is solved using Weighted average cost method
RECONCILE THE NUMBER OF UNITS
BEGINNING UNITS	18000	UNITS COMPLETED	54000
UNITS STARTED	80000	ENDING UNITS	44000
TOTAL UNITS	98000	TOTAL UNITS	98000
STATEMENT OF EQUIVALENT PRODUCTION(WEIGHTED AVERAGE COST METHOD)
	UNITS	MATERIAL		CONVERSION COST
		%COMPLETION	EQUIVALENT UNITS	%COMPLETION	EQUIVALENT UNITS
FINISHED AND TRANSFERRED	54000	100	54000	100	54000
CLOSING WORK IN PROGRESS	44000	82	36080	47	20680
TOTAL PRODUCTION	98000		90080		74680
CALCULATION OF COST PER EQUIVALENT UNITS
	Material	Conversion
cost per equivalent	2.7	5.15
Detailed calculation is done as following
STATEMENT OF COST
COST	MATERIAL	CONVERSION COST		TOTAL
COST OF OPENING WIP	$                      51,764	$             152,477		$            204,241
COST IN AND DURING THE PROCESS	$                    191,452	$             232,125		$            423,577
TOTAL COST	243216	384602		627818
EQUIVALENT UNITS	90080	74680
COST PER UNIT=TOTAL COST/UNITS	$                           2.70	$                    5.15		$                   7.85
CALCULATION OF COST of ENDING WORK IN PROCESS IN JUNE
VALUATION OF CLOSING WIP of 44000	EQUIVALENT UNITS
MATERIAL	36080	$                    2.70	$                        97,416
LABOR	20680	$                    5.15	$                     106,502
TOTAL VALUE OF 44000 UNITS WORK IN PROCESS			$                     203,918
CALCULATION OF COST of UNITS TRANSFERRED OUT
	UNITS	RATE PER UNIT
VALUE OF OUTPUT TRANSFERRED	54000	$                    7.85		$            423,900

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